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I have an online startup that is generating revenue and now I have to file for taxes. I'd like to keep my PayPal separate from personal and keep it purely business so I want to sign up with an EIN.

I am incorporated in Wyoming but operate out of Michigan, the IRS.gov form asks:

"Please select the state/territory where the business is physically located:* "

Do I put Wyoming where the registered agent is, or Michigan where I am?

Thanks

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You put your Michigan address. The incorporation address is of no concern for the IRS, they couldn't care less where you're incorporated - it has no effect on your tax liability.

The address is used when audited, and the IRS expects you to give the address where the records are (i.e.: where the business, aka you, is physically located).

  • assuming there is an address in Michigan and that the records aren't all digital "in the cloud" – CQM Mar 28 '14 at 12:41
  • @CQM no, the address is where they will come looking for you. It is not the agent of record address (not for service), it is the actual address where the records are. The records, if they're digital, are where you are, because you are the one controlling access. – littleadv Mar 29 '14 at 0:43
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For purposes of the EIN the address is largely inconsequential. The IRS cannot (read: won't) recover the EIN if you fail to write it down after the website generates it for you. On your actual tax form the address is more consequential, and this is more so a question of consistency than anything. But an entity can purchase property anywhere and have a different address subsequent years. Paying the actual taxes means more than the semantical inconsistencies. The whole purpose of separate accounts is to make an audit easier, so even if someone imagines that some action (such as address ambiguity) automatically triggers an audit, all your earnings/purchases are not intermingled with personal stuff, which just streamlines the audit process.

Consequences (or lack thereof) aside, physical means where physical property is. So if you have an actual mailing address in your state, you should go with that. Obviously, this depends on what arrangement you have with your registered agent, if all addresses are in Wyoming then use the Wyoming address and let the Registered Agent forward all your mail to you.

Don't forget your $50 annual report in Wyoming ;)

How did you open a business paypal without an EIN? Business bank accounts? Hm... this is for liability purposes...

  • So many words, and still wrong... – littleadv Mar 28 '14 at 1:12

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